How to build a retirement fund in a shorter duration?

Plan your retirement funds beforehand.

09:04 13 September 2013

You may have heard people boast often enough that “I’ve been there, done that.”   If the same thing could be said about retirement planning, then more retirees would literally be basking in the sun and enjoying the fruit of their labours.

It remains to be an enigma why individuals, despite knowing that retirement is inevitable, fail to plan for it.  Perhaps because retirement is so way down the road and we cannot see it happening in the near future and there are far more exciting things to plan for. 

It will take some foresight and more effort to be able to seriously set up a retirement fund as part of retirement planning.  To make it easier, we have written down some tips on you can create an effective retirement plan.

The first step to retirement planning is setting a target so your motivations will have a more concrete basis.  How much money do you have to have to enjoy a comfortable retirement time.  You can use a retirement calculator but building a solid retirement fund will take a little more effort than whipping up some numbers.

Now that you have worked on the figures, decide at what age you would want to retire so you know how much time you have to achieve your target. The next step will be deciding how much you can contribute to your pension fund to achieve your target within on or before your retirement time.  It will be too easy to opt for the lowest level of savings allowed but why don’t you bite the bullet and go for a higher level because believe it or not, you will be able to afford it.

It will help hasten the achievement of your targets by putting your retirement fund in secured, low risk investments that will bring your dreams to fruition.

Retirement planning might seem laughable when you are just starting your life, building your career and still finding your rightful place in this exhilarating, exciting world.  However, your hectic days should not prevent you from leaving a tiny space in your consciousness that retirement is a reality that you have to face and be ready for.